[GM2006]

"Consignment model frequently results in something other than a bargain. If the owner was offering the good at a bargain price, they would not need the dealer to offer their assistance marketing the item. The dealer would simply buy the good and mark it up for sale. Or the seller would be able to sell it to a customer directly. Consignment works where rarity of good and rarity of buyer allow for the mark up by the consignor to be accepted by the buyer and seller.

In the car market, the ability to cheaply market cars for sale online through enthusiast sites makes the niche for car consignment specialized IMO."


Of course, many sellers offer their cars for sale online (eg; Craigslist, Auto Trader), and do OK. While others don't want to go that route (eg; deal with strangers, prep the car for sale, spend time describing or showing the car, negotiate price, etc.).

Consignment does offer the seller, who lacks the interest or time to sell their own car, a way to get out of the car at a higher price than would be offered by a dealer. That's a bargain for those sellers.